Credit Analysis Models - Calculating Annual Projected Rate of Returns

In the initial reading given in the LOS, when calculating the annual projected rate of return given default in each year, the formula was equated to the bond’s fair price (i.e. Calculated Bond Price - CVA). But in Example 2 (Analysis of Credit Risk (2)) in the LOS, the formula was equated to the price the trader bought the bond at (104) which is not the fair price of the bond. I’m confused. Can someone please explain the difference?